Buying a new build property: a quick five-step guide

1. Securing a mortgage

If you’re looking for a mortgage on a new build, it’s a good idea to approach a mortgage broker. Due to the speedy nature of new build purchases, it’s vital to secure a mortgage in principle as soon as possible. 

Individual lenders take a varying approach to brand new homes. Still, lenders generally tend to be stricter in their requirements for new builds as they are considered riskier properties and have the potential to devalue. Therefore, consulting a mortgage advisor will be helpful to ensure you have the best deal and cover all requirements.

Later, your mortgage lender will arrange for a surveyor to conduct a valuation survey. If you’re buying off-plan, the valuation will be based on the plans and specifications the developer has provided.

2. Researching the new build

It’s essential to research the developer, the site and the surrounding location. It’s also a good idea to visit existing estates built by the same developer to get a feel for the type of home you’re looking for. 

Researching online and using forums to see other people’s experiences in buying a new build property is key to deciding if this type of property will be a fit for you.

Preparation is even more crucial if you are buying off-plan. It’s a good idea to request detailed specifications listing the materials, fixtures and fittings that have been used throughout the property. This information will allow you to check whether the developer has met the necessary standards of quality set out in its warranty.

3. Securing the property

Once you have found a property you are happy with, you can secure the property by paying the developer a reservation fee. The reservation fee will be deducted from the final price on completion.

This fee can range from £500 to £2,000, and will reserve the home for a 28-day period. During this time, the developer will expect to exchange contracts. You will lose your reservation fee if exchange fails to happen within this window. It is therefore vital to ensure you have secured your mortgage offer and to now instruct a solicitor.

4. Choosing a conveyancer

Instructing a trusted and reputable conveyancer is extremely important in ensuring the legal process runs as smoothly as possible in a timely manner. Your conveyancing solicitor will do several things to ensure you’re protected and the purchase can go ahead without any problems. They will review the legal paperwork and prepare documents for your signature to prepare for exchange. 

Your new build conveyancing solicitor will also raise any necessary enquiries to the developer’s solicitor to ensure there are no issues. If you have any queries or concerns, please do contact your conveyancer throughout the process, as they will be able to advise or seek further information about the property. 

5. Exchange 

As previously mentioned, you will typically have 28 days to exchange. Your conveyancing solicitor will exchange once you have signed the legal documents and transferred them the deposit (10% of the purchase price), which they will send to the developer on your behalf. 

Once exchange has occurred, you are legally committed to purchasing the property. If you have exchanged on a property that has not been finished, you will exchange with completion ‘on notice’. Once the property construction has been completed, notice will be served by the developer’s conveyancer, and completion will take place within approximately 5-10 working days. 

Once completion occurs, you can pick up the keys and move into your brand-new property!

Contact our new build conveyancing team

If you would like to speak to a member of our team about your conveyancing requirements, contact us today. Our new build solicitors and licensed conveyancers are on hand to answer your questions.

We have offices in London, Brighton, Eastbourne, Hastings, Uckfield, and Ulverston, and work with homebuyers across the country.